MVB Bank to Purchase Potomac Mortgage Group - Clarksburg, Morgantown: News, Sports, Weather

MVB Bank to Purchase Potomac Mortgage Group

Posted: Updated:

MVB Financial Corp. announced Dec. 3 that it has reached an agreement to purchase the northern Virginia residential mortgage company Potomac Mortgage Group LLC, which has offices in Fairfax, McLean and Reston. MVB will purchase PMG for about $19 million in cash and MVB common shares.

MVB expects the addition of PMG to be accretive to its earnings beginning in the first quarter of 2013. PMG will retain its identity and will become a wholly owned subsidiary of MVB Bank, Inc.

The transaction is scheduled to close before the end of the current calendar year pending regulatory approvals and other customary closing conditions. PMG's CEO Ed Dean and management team will continue to operate the mortgage subsidiary. In addition, Dean will oversee MVB's total mortgage operations. PMG's has an experienced 68-person work force. An additional 30 employees are employed through PMG's 50 percent-owned operations center, which will also support MVB's overall mortgage operations.

In a news release, MVB CEO Larry Mazza said, "We believe MVB's success in the retail mortgage lending arena will be strengthened by the addition of PMG's mortgage business with its talent, technology platform and high-quality operations. In my opinion, northern Virginia is one of the best markets for mortgage banking in the country and we are ecstatic to be in this growing and vibrant area.

"MVB is very familiar with Ed Dean as we have known and worked together with him for more than 20 years in various banking relationships and with PMG. We believe he and his team are some of the best in the mortgage banking business. Ed is a proven leader who can make this strategic partnership with PMG into a positive game changer for both organizations. I am happy we are on the same team."

Dean is a Clarksburg native.

"Joining forces with an organization the caliber of MVB Bank is a unique opportunity to allow PMG to lend beyond its current geographic scope, and our combined operations and systems will support significant mortgage lending growth potential," Dean said in the news release.

With the addition of PMG's annual production of mortgages, MVB Bank and PMG are expected to become a $1 billion mortgage production unit at a time when MVB Bank is experiencing record mortgage lending, according to an MVB news release.

MVB Financial Corp. is based in Fairmont. It is the parent company of MVB Bank, which has locations in Marion, Monongalia, Harrison, Berkeley and Jefferson counties.